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Bombay High Court

AU SMALL FINANCE BANK LTD THRO. GANESH MUTHTHALversusTHE STATE OF MAHARASHTRA THROU. GOVT PLEADER AND ORS

Decided
Disposal
Disposed Off

Holding

The Chief Judicial Magistrate, Mumbai is directed to dispose of the Section 14 application within 30 days from the date of this order.

Summary

Au Small Finance Bank Ltd, as a secured creditor, filed a writ petition seeking the High Court to direct the Chief Judicial Magistrate, Mumbai, to decide a pending application under Section 14 of the SARFAESI Act within 30 days, as mandated by a prior judgment in L & T Finance Ltd. v. State of Maharashtra. The petition alleged that the magistrate had failed to adhere to the timeline prescribed in that judgment. The Court examined the earlier precedent and noted the magistrate's non‑compliance. It consequently ordered the magistrate to dispose of the application within 30 days from the date of the order. The petition was therefore disposed with the specific direction.

Issues considered

  • Whether the Chief Judicial Magistrate, Mumbai must be directed to decide a Section 14 application within 30 days as per the precedent.
  • Whether the High Court can issue such a mandatory timeline to a lower court.

Legislation cited

Subjects

  • SARFAESI Act
  • Section 14 application
  • secured creditor
  • judicial magistrate
  • timeline compliance
  • writ petition

Judgment

                                                                                               11-wp-5630-2026.doc



                                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY

                                                 CIVIL APPELLATE JURISDICTION

                                               WRIT PETITION NO. 5630 OF 2026

                     Au Small Finance Bank Ltd thro.                   ..            Petitioner
                     Ganesh Muththal
                     V/S.
                     The State of Maharashtra Throu. ..                             Respondents
                     Govt Pleader and Ors
                                                         -------------------
                     Mr. Sanjay Anabhuwane i/by Medha Rane, for the Petitioner.
                     Ms. M.S. Bane, AGP, for respondent No.1/State.
        Digitally
        signed by
        VARSHA
VARSHA DEEPAK
DEEPAK GAIKWAD
                                                         --------------------
GAIKWAD Date:
        2026.04.30
        19:12:10
        +0530                                           CORAM         :     MANISH PITALE &
                                                                            SHREERAM V. SHIRSAT, JJ.
                                                           DATE       :     30TH APRIL 2026.
                     PC:


                     1.           By this petition, the petitioner-bank (secured creditor) is seeking
                     limited directions to the Chief Judicial Magistrate, Mumbai to dispose
                     of the pending application under Section 14 of the Securitisation And
                     Reconstruction of Financial Assets and Enforcement of Security Interest
                     Act, 2002, in terms of the timelines indicated by this Court in its
                     judgment in the case of 'L and T Finance Limited Vs. State of
                     Maharashtra'1

                     2.           The application under Section 14 of the Securitisation Act in the
                     present case was filed on 09/02/2026. Paragraph 23(a) of the
                     aforesaid judgment of this Court stipulates that such an application
                     shall be decided not later than 30 days from the date of filing the
                     1     2023 SCC Online Bom 931

                         varsha                                                                            1 of 2
                                                                11-wp-5630-2026.doc



application.

3.        Evidently, the aforesaid Magistrate has failed to abide by the
directions contained in the said judgment of this Court.

4.        Learned AGP appears for respondent No.1.

5.        In view of the above, the Writ Petition is disposed of by directing
the Chief Judicial Magistrate, Mumbai to dispose of the application
filed by the petitioner-bank (secured creditor) within 30 days from
today.



(SHREERAM V. SHIRSAT, J.)                          (MANISH PITALE, J.)




 varsha                                                                     2 of 2


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